City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Planning and Development Services
Meeting Date: May 13, 2024
Report #:2403-2760
TITLE
2501 Embarcadero Way [22PLN-00367]: Request for Council Approval of a Site and Design Application to Allow the Construction of a Local Advanced Water Purification System at the Regional Water Quality Control Plant (RWQCP). A Design Enhancement Exception to Allow for a Taller Screening Wall is Also Requested. Environmental Assessment: Council Previously Adopted an Addendum to the 2015 Environmental Impact Report (EIR) for the City of Palo Alto Recycled Water Project. Zone District: PF (D) (Public Facility with Site and Design Combining District).
RECOMMENDATION
Staff recommends that Council take the following action(s):
1. Consider the previously adopted addendum to the City of Palo Alto Recycled Water Project EIR, provided in Attachment H.
2. Approve the draft Record of Land Use Action (RLUA) approving the request for Site and Design Review as well as the requested Design Enhancement Exception based on findings and subject to conditions of approval.
EXECUTIVE SUMMARY
The application is a request for Site and Design Review for a proposed local advanced water purification system (AWPS). The project improves recycled water quality by reducing its average concentration of total dissolved solids (TDS) through the blending of reverse osmosis permeate with tertiary-treated recycled water. The project also includes a request for a Design Enhancement Exception to allow for a solid wall to provide screening and to serve as a sound barrier.
The project responds to Council’s expressed goal, as set forth in the Recycled Water Salinity Reduction Policy adopted in 2010, to reduce the TDS level of recycled water to 600 parts per million. It also responds to mitigation measure HYD-3d set forth in the corresponding Environmental Impact Report adopted in 2015, which requires the City to consider treatment options, such as reverse osmosis, to reduce the salinity of its recycled water and thus make its recycled water useable for irrigation of salt-sensitive species.
In 2019, Council approved an agreement with Valley Water to further project design; these plans are presented to Council in this report for approval of this planning entitlement. A location map for the proposed AWPS is included in Attachment A. A detailed project description is provided in Attachment G.
BACKGROUND
Following adoption of the Recycled Water Salinity EIR, Council directed staff to coordinate with Valley Water and Mountain View to prepare a feasibility study and preliminary design report for a local advanced water purification system (AWPS), which was completed in 2017. The report was used as the basis for preparing preliminary plans for the proposed project. In 2019 the City Council approved an agreement with Valley Water to advance recycled water projects in the region; one of them is the Local AWPS. Staff proceeded with the design of the project in 2021. That design is reflected in the proposed project plans.
Previous Council Actions
In September 2015, the City of Palo Alto City Council certified an Environmental Impact Report (EIR) for the Palo Alto Recycled Water Project (SCH #2011062037). The EIR included Mitigation Measure HYD-3d, which requires the City to consider treatment options, such as reverse osmosis, to reduce the salinity of its recycled water and thus making its recycled water useable for irrigation of salt-sensitive species. Since that time, staff has presented updates and components of this project to Council as follows:
•April 4, 2016, staff provided Council with an update on the recycled water EIR and collaboration work with Valley Water and Mountain View to expand the program and reduce TDS (CMR #6691);
•November 18, 2019, City Council approved Valley Water Agreement to move forward with the design of the Local AWPS. The EIR Addendum for the proposed AWPS was also adopted at this hearing (CMR #10627);
•March 8, 2021, Council approved a design contract for the Local AWPS (CMR #11782);
•September 12, 2022, City Council held a study session to hear an update on, and discuss, the proposed project (CMR # 14650);
•On September 19, 2023, the project was discussed at the Finance Committee with a recommendation to move forward with a Council recommendation (CMR#2305-1404); and
•October 16, 2023, Council approved Staff to move forward with loan agreement and directed Staff to secure financing and solicit bids for a construction contract (CMR #2308-1863).
Parks and Recreation Commission
Although Parks and Recreation Commission (PRC) review of this project is not required, Public Works Water Quality consulted the PRC in early design phases to obtain their feedback. The Parks and Recreation Commission (PRC) held two study sessions on May 24, 2022 and December 13, 2022 to provide feedback on the project. PRC feedback focused on the landscaping component, path alignment and external screening. Commissioners were generally supportive of the proposed design at the December study session.
Planning and Transportation Commission
In accordance with the Site and Design Review process, this project was previously reviewed by the PTC. On February 28, 2024, the PTC recommended approval of the proposed project to Council (6-0; Templeton recused), making the following motion:
Recommend approval of the project, including the design enhancement exception, to City Council based on the findings and subject to conditions and asking staff to:
•Investigate utilizing 2,700 kelvin lighting versus the 4,000-kelvin lighting currently proposed; and
•Consider 100% native planting
The landscaping plan has been refined to reflect all native plantings except for the climbing vines for the wall, for which a native alternative was not available. Staff investigated reducing the lighting color temperature. Ultimately, the recommendations to reduce the color temperature of the proposed safety lighting was not incorporated, as detailed discussed further in the analysis section of this report.
Architectural Review Board
On November 2, 2023, the Architectural Review Board (ARB) held a hearing to provide feedback on the proposed project design. The project applicant addressed most of the ARB comments and returned to the ARB on April 4, 2024. A summary of design refinements to address ARB comments is included in the April 4, 2024 staff report. The ARB recommended approval of the proposed project with the following conditions:
•The color temperature of the lighting be changed to 3,000 kelvins; •A screen be added to the northeast, northwest and southwest side of the building so that the bottom of the screen is no greater than 20 feet above finished floor; •Add a condition of approval related to requirements for motion sensors to reduce lighting on site and to set a maximum time limit for these motion sensors such that lights are only on at night as necessary for operational and safety needs; •Extend the sound wall to meet the existing chain link fence; •Explore the potential relocation of reverse osmosis permeate tank to move toward the new proposed structure and/or to move towards the future headworks building; and •That tree plantings be increased on the reverse osmosis permeate tank side of the soundwall.
The applicant has explored these conditions and implemented them where feasible, as discussed further in the analysis. In particular, the proposed screening has been added, a condition of approval has been added for motion sensors, the sound wall has been extended, and additional trees are shown on the site plan. Relocation of the reverse osmosis permeate tank was explored, but ultimately the location was not revised. The recommended modifications to lighting color temperature were also not made. Those are discussed further below in the analysis.
Project Description
A complete project description is included in Attachment G. In summary, the project consists of several structures and components, including:
•A reverse osmosis permeate storage tank.
•a small prefabricated electric building; and
•a pre-engineered open-air building.
The circular storage tank would be 50 feet in diameter with a sidewall height of 30 feet and a capacity of 350,000 gallons. It would be erected on a reinforced concrete mat type foundation supported by deep pile foundation. The open-air building covers a membrane filtration system, chemical storage/feed system components, and other ancillary components essential to the purification system. The facility would have a building footprint of approximately 15,544 square feet. The open-air building will be constructed over a concrete deck in order to raise the equipment up out of the flood zone per FEMA requirements. The project will also include a blending station located in the basement of the RWQCP administration building and installation of yard piping inside the RWQCP. The project will be located on the northwest side of the RWQCP, abutting Embarcadero Road, partially outside the existing fence line but within the defined boundaries of the plant. The project also includes new landscaping, a new concrete screening wall, and revisions to the chain link fence surrounding the RWQCP to incorporate the area of the new AWPS (which would be inside the screening wall).
Requested Entitlements, Findings and Purview
The applicant requests the following discretionary application:
•Site and Design Review: The process for evaluating this type of application is set forth in PAMC 18.30(G). Site and Design applications are reviewed by the PTC and ARB, and recommendations are forward to the City Council for final action. Site and Design projects are evaluated against specific findings that include both the ARB findings (ARB purview) and Site and design findings (PTC purview). All findings must be made in the affirmative to approve the project. Failure to make any one of the findings requires project redesign or denial. Findings for Council to approve this site and design application are provided in Attachment B.
•Design Enhancement Exception (DEE): The process for evaluating this type of application is set forth in PAMC 18.76.050. DEE applications are reviewed by staff and/or the Architectural Review Board in accordance with PAMC 18.77.070 and recommendations are forwarded to the Director of Planning and Development Services for final action (or Council when other Council approvals are required). DEE projects are evaluated against specific findings. All findings must be made in the affirmative to approve the project. Failure to make any one of the findings requires project redesign or denial. Findings for approval of the proposed DEE are provided in Attachment B.
ANALYSIS
Staff has evaluated the proposed project and finds the project consistent with the Comprehensive Plan, Zoning Ordinance and other applicable goals and policies of the City.
There were additional recommendations from the PTC and ARB to explore and/or implement with respect to modifications to lighting and relocation of the reverse osmosis tank that were not incorporated into the revised project design. In these instances, memorandums explaining the exploration process and why these were not ultimately incorporated into the design have been provided for Council’s consideration.
Response to ARB and PTC Recommendations
As discussed above, several of the recommendations from the ARB, PTC, as well as early feedback from the PRC were incorporated into the project design. These include the addition of trees, reduced removal of trees, revisions to the landscape design, and other improvements to the color and design of the structures. However, there were two recommendations that were not incorporated into the design related to lighting and relocation of the reverse osmosis tank.
Color Temperature of Lighting
Both the PTC and the ARB asked the Public Works Department’s RWQCP to explore reducing the color temperature of the lighting for the proposed facility. In earlier design iterations Public Works staff had reduced the color temperature from 5,000 kelvins, which is the Illumination Engineering Society’s recommendation for industrial facilities to 4,000 kelvins. The City’s consultant design engineer indicated that 4,000-kelvins was the warmest temperature recommended for this facility while still ensuring worker safety. The PTC and ARB asked for the color temperature to be further reduced to between 2700 and 3000 kelvins. The City consulted experts to determine whether the design could be revised to reflect these recommendations.
Ultimately, the recommendations to reduce the temperature of the proposed safety lighting further were not incorporated into the design, consistent with the engineer’s recommendations, which had concluded that the proposed reduction to color temperature would not provide sufficient safety for workers. A summary of the reasoning and the engineer’s formal recommendation is included in Attachment D.
Nevertheless, the City added several features to reduce lighting while maintaining worker safety:
1. All lighting is reduced to the minimum necessary, under the canopy and equipment area where workers need access to perform necessary operation and maintenance activities.
2. Light is shielded downward under the canopy to target the equipment area. The selected lighting provides a high level of light under the canopy but avoids light dispersion through shielding. As noted above, additional screening was added to better screen the lighting in addition to shielding views of the equipment from the public right- of-way.
3. The lighting color temperature was reduced from 5,000 kelvins to 4,000 kelvins
4. The design incorporates provisions for timers, motion sensors, and photocells.
Staff recommends allowing the color temperature lighting be 4,000 kelvins due to concerns for worker safety and based on the other provisions provided that effectively reduce light spillover and reduce nighttime lighting.
Relocation of the Reverse Osmosis Tank
The memorandum in Attachment E explains the options that were explored for relocating the reverse osmosis tank to be further from Embarcadero Road and/or closer to the existing tank.
Ultimately, the analysis determined that modifications would not be feasible because the project was designed to construct the reverse osmosis tank as far as feasible from the public right-of-way already while maintaining the necessary clearances for delivery and maintenance access.
Consistent with this memorandum, staff would not recommend adding further conditions that require modifications to the location of the reverse osmosis tank. As noted above, modifications to improve tree planting in front of the reverse osmosis tank were made, consistent with the ARB’s recommendations.
Consistency with the Comprehensive Plan, Area Plans, and Guidelines The Comprehensive Plan includes Goals, Policies, and Programs that guide the physical form of the City. The Comprehensive Plan provides the basis for the City’s development regulations and is used by City staff to regulate building and development and make recommendations on projects. Further, ARB Finding No. 1 requires that the design be consistent and compatible with applicable elements of the Palo Alto Comprehensive Plan. The Comprehensive Plan land use designation for the project site is major Institution/Special Facility which includes governmental and community service uses and lands that are publicly owned such as the subject property.
The proposed AWPS within the area of the RWQCP boundaries is consistent with the Comprehensive Plan Land Use. On balance, the project is consistent with the goals of the Comprehensive Plan, including Policy N-4.17 of the Natural Element, which states “Improve source control, treatment, and distribution of recycled water, including reducing the salinity of recycled water, to maximize its use.”
Baylands Design Guidelines
The project is located within the boundaries of the Baylands Nature Preserve. However, because it is within the RWQCP boundaries, it is not located on land that is dedicated as parkland. Nevertheless, the project is subject to the Baylands Design Guidelines. The project is consistent with the guidelines to the extent that they are applicable.
Based on ARB feedback, the project was revised to improve consistency with the guidelines. In particular, the facility’s proposed red roof was modified to match the standard Sandy Grey color that is recommended in the design guidelines, to comply with the guideline’s “muted, natural colors” requirement. The plans show the general location of interactive signage, but the details of the signage will be reviewed separately from the current application. Any future signage will be required to comply with the Baylands Design Guidelines.
Airport Influence Area
The project is located within the Airport Influence Area. Specifically, the Comprehensive Land Use Plan for the Palo Alto Airport shows that the project area, and all of the RWQCP, is within the Turning Safety Zone. In the Turning Safety Zone, typically lower density uses are encouraged. Hazardous materials uses such as gas stations are discouraged. The project includes some hazardous materials in relatively small quantities for the treatment of water, similar to the existing RWQCP. These materials are not combustible and do not pose a concern within the Turning Safety Zone. The project does not conflict with any height restrictions in the plan. Further, as detailed in the EIR addendum in Attachment H, the RWQCP is considered an existing facility.
Staff contacted County Airports on January 5, 2024 to confirm whether a hearing before the County Airport Land Use Commission was required for the proposed project. County staff responded on January 8, 2024 confirming that a hearing before the ALUC was not required for the proposed project, stating that only amendments to the General Plan, a Specific Plan or zoning or building regulations need to be referred to the ALUC, not individual development projects.
Zoning Code Compliance
The project is located within the Public Facilities (PF) Zone District as well as the Site and Design (D) Review combining district. The proposed facilities for the treatment of recycled water is considered a public facility and is an appropriate use within the PF zone district and especially within the boundaries of the existing Regional Water Quality Control Plant. Because the project includes a new building within the Site and Design Review Combining District, Site and Design review is required. A detailed review of the proposed project’s consistency with applicable zoning standards is provided in Attachment C. The project is consistent with the PF Zone District and D Combining District requirements or is otherwise requesting to deviate from the code in a manner that is consistent with the zoning ordinance. More specifically, a Design Enhancement Exception is requested to allow for an approximately 10-foot-tall wall where an 8-foot-tall wall is allowed in accordance with Chapter 16.24 of the code. Findings for the approval of both applications are included in the Draft RLUA in Attachment B.
Tree Ordinance Compliance
The proposed project includes the removal of 35 trees, 12 of which are protected due to their size. These trees are varying species of Eucalyptus, Myoporum laetum, and Casuarina glauca trees which are primarily non-native, invasive species. All of these are within the proposed project footprint. At the Parks and Recreation Commission’s request, the project was refined in its early design phases (prior to formal application submittal) to prioritize retention of some of the larger trees along the Embarcadero frontage. The project refinements retained eleven additional trees. However, five of those trees have since died/fallen in storms. The project includes planting 36 trees along the project frontage, along with other large and small shrubs, to provide an attractive landscape buffer between the pedestrian pathway and the RWQCP as well as between the pedestrian path and Embarcadero Road.
Subdivision Map Compliance
The existing property lines for the site do not follow the existing boundaries of the RWQCP.
Therefore, under existing conditions, the new facility would be constructed over an existing property line. A certificate of compliance is required to revise the boundary between the two City parcels (APN 008-05-005; and APN 008-06-001). The new proposed boundary is shown in the project plans. Recordation of the certificate of compliance is required as a condition of approval prior to building permit issuance.
FISCAL/RESOURCE IMPACT
Funding for the Local Salt Removal Facility is projected to come from several sources. Prior to allocation of the $63.6 million total project cost for the Preliminary Finance Plan, external funding sources were subtracted from the total to reduce the overall cost to each agency.
External funding sources include the $16.3 million from the 2019 Agreement with Valley Water and a $12.9 million US Bureau of Reclamation grant, leaving a remaining funding requirement of $34.7 million which will be covered by Mountain View. Palo Alto currently has no plans to expand its existing recycled water system and Palo Alto does not currently have a customer base requesting this higher quality recycled water. Therefore, Palo Alto and Mountain View staff agreed that Mountain View would pay the remainder of the capital costs associated with this project. Mountain View staff recommended this project and Mountain View’s City Council approved it on June 27, 2023. On September 19, 2023 the finance committee recommended that Council approve the Financing Plan for the project and authorize staff to amend the Recycled Water Agreement with the City of Mountain View. Staff will return to Council for approval of an amendment with Mountain View. Council approved the financing plan on October 16, 2023.
STAKEHOLDER ENGAGEMENT
The Palo Alto Municipal Code requires notice of this public hearing be published in a local paper and mailed to owners and occupants of property within 600 feet of the subject property at least ten days in advance. Notice of a public hearing for this project was published in the Daily Post on May 1, 2024, which is 12 days in advance of the meeting. Postcard mailing occurred on April 30, 2024, which is 13 days in advance of the meeting.
City Outreach and Coordination
The City’s Public Works, Environmental Services Division has worked diligently on this project since Council’s adoption of the EIR for the Recycled Water Program. In addition to the study sessions with Council and the PRC, as noted above, they held the following meetings to obtain stakeholder feedback throughout the process.
•Kickoff meeting for the feasibility study was held June 2016 with Mountain View and Valley Water. The City, in coordination with Valley Water and Mountain View, held workshops at 50% completion (September 2016), 80% completion (December 2016), and 95% completion (January 2017).
•Preliminary Design workshop with Mountain View and Valley Water (October 2017) •Quarterly Joint Recycled Water Meetings with Palo Alto Council Members, Mountain View Council Members and Valley Water Board Members
•Palo Alto hosted a community meeting on October 23, 2019 to inform the community and answer questions about the components of the funding Agreement between Palo Alto, Valley Water, and Mountain View, including partial funding for the AWPS/Local Plant. Members of the public approached staff during break-out sessions to get direct answers to questions. Most comments were focused on the Agreement terms and were overall supportive of the AWPS facility. With respect to Palo Alto itself, the open meetings on the budget process serve as the main vehicle for engaging the community on both new projects such as this and associated rate impacts. EIR Addendum was covered in this session.
•There was a 30% design workshop in December 2021, a 60% design workshop in January 2022, and a 90% design workshop in November 2022. Valley Water and Mountain View staff attended these workshops
•September 19, 2023 –There was a Finance Committee meeting to discuss the Local AWPS project. The Finance Committee approved and recommended moving forward.
Public Comments
At the PTC hearing on February 28, 2024, there was a comment from one member of the public who expressed concerns regarding lighting and its impacts on avian species as well as the color of the trees. The commented requested that the color temperature of the lighting be reduced to align more with the recommended color temperature recommended by Dark Sky International. At the ARB hearing on April 4, 2024, a representative of the Sierra Club Loma Prieta Chapter identified concerns about the proposed project with respect to lighting. The same commenter, in coordination with the Santa Clara Valley Audubon Society, also submitted a letter in response to the proposed project (Attachment F).
However, staff met with Midpeninsula Open Space to discuss the project on November 20, 2023. Midpeninsula Open Space provided the following key comments on the project:
•Consider egrets and herons in your planning. These nesting birds tend to return to the same nests year after year so the loss of trees with these nests can be impactful beyond the direct impact during nesting season if their nests are present in the trees planned for removal.
•Consider the trees being selected and whether any trees would serve as perching areas for raptors that may impact adjacent wetland areas.
•Consider additional measures to better protect from spread of invasive species, especially species such as eucalyptus, when removing. Protect from plant pathogens (e.g. those that cause sudden oak tree death).
•Make sure that the plant species being planted in the landscaping are appropriate for the environment in the Baylands
The trees proposed for removal do not have any egret or heron nests that these species may return to. In clarifying the location of the proposed tree plantings, staff and Midpeninsula open space agreed that trees in this location would not pose a concern for raptor predation.
Midpeninsula Open Space has agreed to send a list of standard best management practices to protect from the spread of invasive species that the City can review and incorporate as applicable into the building permit. The planting plan was designed to include native, low water use species appropriate for planting in the baylands. The planting plan is shown on sheet L-00- 200 and L-00-201 of the plans.
ENVIRONMENTAL REVIEW
The subject project has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. In 2015 Council adopted an EIR for the City of Palo Alto Recycled Water Project. The EIR included mitigation Measure MM HYD-3d, which required the City to consider treatment options, such as reverse osmosis, to reduce the salinity of its recycled water and thus make its recycled water useable for irrigation of salt-sensitive species.
On November 18, 2019, in taking discretionary actions to further pursue this project, Council adopted an EIR addendum that included more site-specific details associated with the proposed development. The adopted CEQA addendum is included in Attachment H.
ATTACHMENTS
Attachment A: Location Map
Attachment B: Draft Record of Land Use Action
Attachment C: Zoning Comparison Table
Attachment D: Lighting Memorandum
Attachment E: Reverse Osmosis Tank Relocation Memorandum Attachment F: Applicant’s Project Description
Attachment G: Public Comment
Attachment H: Project Plans and CEQA Addendum
APPROVED BY:
Jonathan Lait, Planning and Development Services Director